GM Shifts Production to Mexico Amid Policy Pact: Auto Week
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GM Shifts Production to Mexico Amid Policy Pact: Auto Week

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Óscar Goytia By Óscar Goytia | Journalist & Industry Analyst - Thu, 05/21/2026 - 11:48
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This week in automotive news, General Motors announced a strategic shift, relocating Aveo and Groove production from China to Coahuila. Meanwhile, Mexico joined a regional trade pact aimed at standardizing EV policies across Latin America. While Stellantis outlined a recovery plan and Nissan continued to navigate financial pressures, Honda reported growth in local SUV sales and Volkswagen confirmed the return of the ID. Buzz. 

Riders, start your engines — this is the week in automotive:

GM Moves Aveo and Groove Production from China to Mexico

General Motors de México (GM) announced a strategic shift in its manufacturing operations, confirming it will relocate the assembly of its top-selling Chevrolet Aveo and Chevrolet Groove models from China to its Ramos Arizpe facility in Coahuila. The move, part of a broader US$1 billion investment strategy, aims to replace Asian imports with domestic production and reach an annual capacity of 80,000 units for the Mexican market by 2030. 

Honda México Sales Grow 4.9% on Strong SUV Demand

Honda México reported cumulative sales of 13,554 vehicles in 2026, representing a 4.9% increase compared with the same period in 2025, supported by sustained demand for passenger sport utility vehicles and stable monthly performance. The company sold 2,462 units in April, slightly above the national industry average, according to figures released on May 15 from its operations in El Salto, Jalisco. 

Stellantis to Present US Recovery Plan with China Ties

Stellantis will present a long-term business plan on May 21 focused on restoring growth in the United States, restructuring its brand portfolio and expanding partnerships with Chinese automakers. CEO Antonio Filosa is set to outline the strategy during a capital markets day in Auburn Hills, Michigan, as the company responds to declining performance in key markets and seeks to rebuild investor confidence after its shares reached a record low in March. The plan is expected to define priorities across operations, capital allocation, and product development.

CalAmp Names New CEO to Drive Connected Mobility Push

CalAmp, a global leader in telematics and connected vehicle solutions, has appointed Maurizio Iperti as its new CEO, the company announced on March 10, 2026. Iperti, who previously served as president of the Connected Car Solutions (CCS) business unit, succeeds Chris Adams following a fiscal year 2025 marked by full debt repayment and a strategic pivot toward data-driven operational intelligence.

Mexico Auto Sector Joins Regional EV and Trade Pact

Mexico’s leading automotive industry associations have joined regional counterparts in signing the Quito Declaration, a strategic roadmap designed to strengthen trade, accelerate fleet renewal, and standardize public policies across Latin America. The agreement, finalized during the 2026 Latin American Automotive Congress (CLAM), establishes a unified front to address global commercial pressures and the region’s transition toward sustainable mobility. 

Volkswagen to Bring ID.Buzz EV Van Back to US in 2027

Volkswagen Group confirmed the return of the electric ID.Buzz van to the United States for the 2027 model year after skipping the 2026 production cycle. The relaunch introduces a camping-oriented configuration designed to broaden the vehicle’s use cases beyond urban mobility. 

Mexico Targets Auto Supply Chain Growth Amid Import Strain

Mexico’s automotive industry accounts for 4.5% of GDP and 31% of manufacturing exports, yet structural dependence on imported intermediate goods and high input costs continue to limit domestic value capture and supplier development. The challenge lies in strengthening local production of components such as specialized fasteners, precision metal parts, and electronic systems, which remain largely sourced from abroad despite the country’s position as a global vehicle exporter, according to analysts interviewed by Expansion.

Nissan Posts US$365 Million Profit but US$3.3 Billion Net Loss

Nissan Motor announced a consolidated operating profit of ¥58 billion (US$365.1 million) for the fiscal year ending March 31, 2026. The results, underpinned by the company’s “Re:Nissan” restructuring plan, indicate a stabilizing financial foundation despite a net loss of US$3.3 billion and a challenging global environment marked by inflationary pressures, shifting tariffs, and volatile market conditions.

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